Svetlana Vlazneva, Natalya MishinaPublished in:
Food Policy and Security
– Volume 2, Number 3 (July-September, 2015)

JEL classification: D31, F51, F52, Q18

Keywords: actual incomes of the population, food independence, food products availability, food security, import substitution, population’s incomes


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Abstract:

The authors explore the basics of the food security of Russia in the periods of sanctions imposed by The European Union and Russian counter-sanctions. On the one hand, both sanctions and counter-sanctions can be regarded as an opportunity for Russian agricultural producers, on the other hand, these pose a serious threat to the population and the country, in general. The recent structural changes evidence a shift in focus of the Russian foreign trade from export-import oriented to mainly import-oriented. The share of import is still very considerable in the resources of certain kinds of products. This import needs to be replaced with the domestic production or with import from the countries that haven’t joined in sanctions. Nevertheless, increase of the internal production can only partially mitigate the shortage of the sanctioned food products. The problem of supplying food products to the population has a pronounced social aspect. The analysis of the dynamics of the actual population’s incomes and the purchasing capacity thereof leads us to the conclusion that certain significant changes have taken place in the population’s consumer behavior and that the people are now trying to save money on food products. All of the above-said clearly evidences a life quality decrease, as well as the aggravation of the food security problem in our country.

Highlights:

► the food security criterion is the indices of the domestic product share in the domestic food market
► in the short-run a considerable growth of the domestic production doesn’t seem possible due to the specifics of the agricultural industry; a successful import substitution requires a long time period
► regardless of the easings or lifting on the importation of the agricultural production or raw materials, achievement of the food production independence should remain a prioritized task in the social and economic management of the country’s development
► over the past year, the minimum living wage cost increased by a quarter, entailing a rise in poverty
► our country’s natural resources potential possesses a strategic advantage
► it might be said that certain serious changes have taken place in the population’s consumer behavior; mainly, this manifests itself in economizing on the food products; all the above-said testifies to the fall of the living standards and quality, as well as to the exacerbation of the food security problem in our country

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